Marti Purchased 100 Shares of Better Foods Stock on Margin

question 80

Multiple Choice

Marti purchased 100 shares of Better Foods stock on margin at a price of $49 a share.The initial margin requirement is 60 percent and the maintenance margin is 30 percent.What is the lowest the stock price can go before Marti receives a margin call?

• A)$17.00
• B)$24.00
• C)$28.00
• D)$30.00
• E)$33.00

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Definitions:

Selling Process

The sequence of steps taken by a seller to engage a potential customer with the aim of closing a sale, typically including prospecting, presentation, and follow-up.

Preapproach

The research and planning stage before a salesperson makes initial contact with a potential client.

Human Skills

Abilities and qualities enabling individuals to interact effectively and harmoniously with others in a personal or professional setting.

Cognitive Skills

Mental abilities that include thinking, problem-solving, decision-making, and the ability to process information efficiently.